and growth. >> angela merkel says all eu member states must cut costs. two weeks ago, the chancellor and british prime minister david cameron went out in brussels securing an eu budget cut of around 3%. now merkel has defended that decision. she says the crisis means everyone has to save. >> i will say it quite plainly -- it would have been hard to explain to people in europe, both to the states hit by the crisis and those bearing the bulk of the burden of solidarity why everyone in europe has to say except for europe itself. >> but the opposition disagrees. social democrats' candidate for chancellor peer steinbrueck says merkel advocates too much austerity and too little investment. he also accused merkel of making common cause with europe's foes. >> you've made an unholy alliance with no sense of perspective. and with a leader david cameron who may want to leave the you. it is a strange alliance if your aim is to safeguard europe's future for the days to come. >> strong stuff, but the opposition is the least of merkel's worries. the european parliament has to pass the budget draft.